Connecticut Attorney General's Office
Press Release
Attorney General Questions Fed Program That Steers Up To $400 Million To Big Three Raters, Asks Fed To Reconsider
April 6, 2009
Attorney General Richard Blumenthal today announced he is investigating why a Federal Reserve bailout program unfairly steers up to $400 million to the Big Three credit rating agencies who helped create the economic meltdown by overrating risky securities.
The attorney general also wrote Federal Reserve Chairman Ben Bernanke asking him to revise the program to stop giving the three agencies an advantage and assure that their seven smaller competitors can compete for the work.
Blumenthal said that the program undermines recent federal legislation explicitly aimed at encouraging competition in the credit rating business by breaking the Big Three's longstanding stranglehold on the market.
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